Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
Industry, Sector and Symbol
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
Phone212-750-7300
Debt
Price-To-Earnings
Sales & Book Value
Annual Sales$1.34 billion
Profitability
Miscellaneous
EmployeesN/A
Next Earnings Date4/30/2019 (Confirmed)
OptionableOptionable
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital announced a quarterly dividend on Tuesday, February 12th. Stockholders of record on Friday, March 15th will be given a dividend of $0.40 per share on Friday, March 29th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 9.22%. The ex-dividend date of this dividend is Thursday, March 14th. This is a positive change from Ares Capital's previous quarterly dividend of $0.39. View Ares Capital's Dividend History.
How were Ares Capital's earnings last quarter?
Ares Capital Co. (NASDAQ:ARCC) announced its quarterly earnings data on Tuesday, February, 12th. The investment management company reported $0.45 EPS for the quarter, beating the Zacks' consensus estimate of $0.41 by $0.04. The investment management company had revenue of $345 million for the quarter, compared to analyst estimates of $327.24 million. Ares Capital had a net margin of 64.17% and a return on equity of 9.69%. During the same period in the previous year, the firm posted $0.38 EPS. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
4 brokerages have issued 12 month target prices for Ares Capital's shares. Their predictions range from $18.00 to $20.00. On average, they expect Ares Capital's share price to reach $19.1250 in the next year. This suggests a possible upside of 10.2% from the stock's current price. View Analyst Price Targets for Ares Capital.
What is the consensus analysts' recommendation for Ares Capital?
4 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last year. There are currently 4 buy ratings for the stock, resulting in a consensus recommendation of "Buy." View Analyst Ratings for Ares Capital.
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. According to Zacks Investment Research, "Shares of Ares Capital have outperformed the industry over the past six months. Further, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Estimates have been stable lately ahead of the company's first-quarter 2019 earnings release. Its investment income growth is expected to continue, driven by the acquisition of American Capital, rise in demand for customized financing and improving economy. Further, the company is likely to record rise in investment commitments. However, mounting expenses are likely to hurt bottom-line growth to some extent. Moreover, the presence of high debt levels remain a major near term concern for the company." (4/16/2019)
- 2. National Securities analysts commented, " Ares had another strong quarter, posting core NII/share of $0.45 versus our estimate of $0.42 and the consensus estimate of $0.41. The earnings beat came as a result of the company having $2.7 billion of commitments on the quarter with the economics of the origination fees recognized up-front, driving higher fee income and thus the earnings beat.
Additionally, the company’s assets acquired from ACAS at fair value finished 12/31/18 at $683mm, down from $728mm Q/Q. Management noted that the exits of non-core assets from ACAS was almost entirely complete.
The rotation into Ares’ direct originations has helped bolster all-in effective yield and thus earnings, leading management to anticipate a higher run rate of earnings going forward and thus the quarterly base dividend was increased to $0.40/share from $0.39/share. ARCC will also pay $0.02/share of special dividends each quarter of 2019 due to the significant realized gains on ACAS assets, which totaled $426mm and had a realized IRR of 37%.
We note that the dividend and earnings growth at ARCC come as the balance sheet has not been fully leveraged. We continue to expect loan market dislocation and think that Ares will benefit from this both in terms of yield and volume. Accordingly, we expect core NII to trend up and for ARCC to have another two base dividend increases in 2020.
While the rotation out of ACAS assets into direct originations has provided a good tailwind for yield and thus earnings, we now expect much of the earnings growth to come from Ares experiencing net portfolio growth and increasing ROE via increases in balance sheet leverage.
We are maintaining our 2019 core NII/share estimate of $1.75 and rolling out our 2020 core NII/share estimate of $1.78. " (2/13/2019)
Has Ares Capital been receiving favorable news coverage?
News articles about ARCC stock have trended very positive this week, InfoTrie reports. The research firm ranks the sentiment of news coverage by analyzing more than six thousand news and blog sources in real time. The firm ranks coverage of companies on a scale of negative five to five, with scores nearest to five being the most favorable. Ares Capital earned a media sentiment score of 3.6 on InfoTrie's scale. They also gave media coverage about the investment management company a news buzz of 10.0 out of 10, meaning that recent news coverage is extremely likely to have an impact on the stock's share price in the next few days.
Are investors shorting Ares Capital?
Ares Capital saw a drop in short interest in March. As of March 29th, there was short interest totalling 5,574,592 shares, a drop of 19.6% from the March 15th total of 6,935,168 shares. Based on an average trading volume of 1,791,209 shares, the days-to-cover ratio is presently 3.1 days. Approximately 1.3% of the shares of the company are sold short. View Ares Capital's Current Options Chain.
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), TPG Specialty Lending (TSLX), New Mountain Finance (NMFC), Golub Capital BDC (GBDC), Pennantpark Floating Rate Capital (PFLT), PennantPark Investment (PNNT), Gladstone Investment (GAIN), Capital Southwest (CSWC), Triplepoint Venture Growth BDC (TPVG), Oaktree Strategic Income (OCSI), Arlington Asset Investment (AI), Stellus Capital Investment (SCM), Safeguard Scientifics (SFE), THL Credit (TCRD) and OFS Capital (OFS).
What other stocks do shareholders of Ares Capital own?
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Mr. Michael J. Arougheti, Exec. VP & Co-Chairman (Age 47)
- Mr. Bennett Rosenthal, Co-Founder and Co-Chairman (Age 56)
- Mr. Robert Kipp DeVeer III, Director & CEO (Age 46)
- Mr. Robert L. Rosen, Director (Age 73)
- Mr. Mitchell S. Goldstein C.P.A., CPA, Co-Pres (Age 52)
Who are Ares Capital's major shareholders?
Ares Capital's stock is owned by a variety of of retail and institutional investors. Top institutional shareholders include Confluence Investment Management LLC (1.19%), LGT Capital Partners LTD. (0.43%), Sound Income Strategies LLC (0.23%), Chartwell Investment Partners LLC (0.18%), Baltimore Washington Financial Advisors Inc. (0.14%) and Financial Advantage Inc. (0.07%). Company insiders that own Ares Capital stock include Bates Ann Torre, Eric B Siegel, Michael J Arougheti, Penelope F Roll, R Kipp Deveer and Steve Bartlett. View Institutional Ownership Trends for Ares Capital.
Which institutional investors are selling Ares Capital stock?
ARCC stock was sold by a variety of institutional investors in the last quarter, including Confluence Investment Management LLC, Joel Isaacson & Co. LLC, Capital Investment Advisors LLC, Westbourne Investment Advisors Inc., Private Trust Co. NA, Rothschild Investment Corp IL, Monument Capital Management and Baugh & Associates LLC. View Insider Buying and Selling for Ares Capital.
Which institutional investors are buying Ares Capital stock?
ARCC stock was purchased by a variety of institutional investors in the last quarter, including Selway Asset Management, LGT Capital Partners LTD., Pennsylvania Trust Co, Pennsylvania Trust Co, Guild Investment Management Inc., Sound Income Strategies LLC, Ipswich Investment Management Co. Inc. and Baltimore Washington Financial Advisors Inc.. Company insiders that have bought Ares Capital stock in the last two years include Bates Ann Torre, Eric B Siegel, Michael J Arougheti, Penelope F Roll, R Kipp Deveer and Steve Bartlett. View Insider Buying and Selling for Ares Capital.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $17.35.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $7.40 billion and generates $1.34 billion in revenue each year. The investment management company earns $858 million in net income (profit) each year or $1.68 on an earnings per share basis.
What is Ares Capital's official website?
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (NASDAQ ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
